22 August, 2018

Over 1,800 permanent jobs created within the framework of the Industrialization Map in half a year — MID

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Performance results of the State Program for the Industrial and Innovative Development of the Republic of Kazakhstan for 2015-2019 for six months of 2018 were considered today at the meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev.

Minister for Investment and Development Zhenis Kassymbek reported that the implementation of the program has a positive effect on the sustainability and growth dynamics in the manufacturing sector.

Thus, the GDP share of manufacturing increased from 11.6% in 2015 to 12.9% in 2018, in industry — from 39.5% in 2015 to 40.9% in 2018, in exports — from 24.4% in 2015 to 28.7% in 2018, the inflow of foreign direct investment grew from 15.5% in 2015 to 17.6% in 2018.

In addition, according to Kassymbek, industrialization contributes to an increase in the number of enterprises in manufacturing industries, oriented to the production of finished products (chemical industry, engineering, furniture, construction materials, etc.).

"If we compare the first half of 2018 with 2010, in the processing industries, there were 3,500 operating enterprises. The growth was mainly due to the increase in the number of enterprises in machine building, food industry, construction materials production, the total share of which in the total growth of operating manufacturing enterprises was more than 50%," Kassymbek informed.

Following the results of six months 2018, in comparison with the same period of 2018, the manufacturing sector grew by 5.2%. The main drivers of growth, contributing to the positive dynamics, are engineering, chemical industry, food production, oil refining, metallurgy, construction materials production.

As the minister for investments and development noted, over the reporting period, all the target indicators show positive dynamics. Because of the provision of systematic measures to support enterprises, the State Program continues the launch of new production facilities, modernization and expansion of existing enterprises. For six months, under the Industrialization Map, 18 projects for 187 billion tenge were introduced, more than 1,800 permanent jobs were created. In the second half of the year, it is planned to implement about 100 projects for 1.1 trillion tenge with the creation of more than 12,200 jobs.

In the end, Zhenis Kassymbek noted that currently, on the instructions of the Head of State, the ministry, taking into account new global technological trends, has developed a conceptual vision of industrial-innovative development for 2020-2024.

The basic principles and approaches for the Third Five-Year Plan of Industrialization will be aimed at further enhancing the competitiveness of the manufacturing industry with an emphasis on the development and promotion of exports. Particular attention will be paid to technology transfer, promotion of digitalization of the manufacturing industry.

Minister of National Economy Timur Suleimenov, in his turn, reported that the monitoring of the implementation of the Regional Entrepreneurship Support Card projects is carried out on an ongoing basis. Suleimenov noted that if 18 projects of the Card were implemented in the first half year, then, as a rule, more than 60-70% of the projects of the Card are mainly put into operation in the second half of the year. This is due to the receipt of state expertise on the design estimates, the supply of materials and equipment, engineering infrastructure, as well as the completion of construction and installation and commissioning of the project.

Projects of the first half year are realized mainly in the construction sector, light and chemical industries. More than 1,800 jobs were created. The contribution of Maps projects to the economy was 30 billion tenge. The multiplicative effect of the projects amounted to 14 billion tenge.

Energy Minister Kanat Bozumbayev noted in his report that within the framework of the program of industrial and innovative development for 2015-2019, Six projects are being implemented. Among them: "Production of motor fuel K5," JSC Condensate, modernization of Pavlodar refinery, reconstruction and modernization of Atyrau refinery, reconstruction and modernization of Shymkent refinery, construction of a plant for the production of polypropylene.

The akims of the West Kazakhstan region A. Kulginov, Zhambyl region — A. Myrzakhmetov, Astana — A. Issekeshev, and Almaty — B. Baybek reported on the implementation of the State program in the regions via the videoconferencing system.

Following the results of the consideration of the issue, the Prime Minister Bakytzhan Sagintayev recalled that the Head of State in his Address to the people specifically noted that industrialization should become the flagship of the introduction of new technologies.

This year, it is planned to implement projects to create seven model digital factories. In this regard, Deputy Prime Minister Askar Zhumagaliyev, the ministries of investment and development, information and communications need to work together in this direction.

"We need to understand that the modernization of enterprises will allow us to produce new high-tech products, create fundamentally new industries and thus increase the export potential," Sagintayev said, noting the need to create new large backbone enterprises and train personnel for the needs of the new industrialization.

The control was assigned to the First Deputy Prime Minister Askar Mamin.

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